$MST Buybacks
Meridian Ventures developed a pool plugin that collects a portion of the Meridian Finance protocol's earnings and performs weekly buybacks to enhance long-term value and strengthen the treasury.
Last updated
Meridian Ventures developed a pool plugin that collects a portion of the Meridian Finance protocol's earnings and performs weekly buybacks to enhance long-term value and strengthen the treasury.
Last updated
As a finance protocol, it's no surprise that Meridian leverages its revenue and TVL to generate fees. At Meridian, these fees are strategically used to reward $MST holders for their participation in the ecosystem. Through extensive research and experience, we've found that the most lucrative approach for both individual and institutional investors is a combination of real yield paid via , consistent price growth driven by , and strategic .
Since November 2024, we transitioned to using buybacks as a way to reward $MST holders. These buybacks are fully transparent, announced every Wednesday on Meridian's social media accounts, and tracked on the buybacks dashboard . Recent buyback activity suggests Meridian is on pace to achieve an annual deflation rate of approximately 5% of the max supply (10 million tokens) and around 25% of the circulating (unstaked) supply.
Meridian's weekly buybacks are funded by four primary revenue sources, each contributing flexible percentage:
MST-ETH Liquidity Pool: $AERO generated from trading fees and liquidity provision on Aerodrome.
Meridian Lend Reserve Factor on Incentivized Markets: Income derived from reserve fees collected on lending activities within incentivized markets.
USDM Redemptions & Mints: Fees earned through the minting and redemption of USDM stablecoins.
Partnerships: Additional contributions from collaborative efforts with ecosystem partners.
This balanced approach ensures sustainable and consistent funding for weekly buybacks.
Objective: To measure the efficiency and impact of buybacks funded by Meridian Finance revenue on the MST ecosystem.
-Total MST Bought Back: Monitor the cumulative number of MST tokens repurchased. - Revenue Allocation: Break down the revenue streams contributing to the buyback fund (e.g., lending fees, trading fees). - Average Buyback Price: Calculate the average MST price at the time of each buyback to assess cost-effectiveness.
Market Impact:
- Price trends before and after buybacks. - Liquidity changes in MST trading pairs. - Circulating Supply Reduction: Analyze how buybacks influence the circulating supply of MST over time. - Protocol Revenue Growth: Measure the correlation between increased revenue streams and buyback capacity.
Do note: All buybacks are made on the open market .
